Foreign aid disbursement to Bangladesh has significantly declined, totaling $3.53 billion in the first half of the current fiscal year, down from $4.06 billion during the same period last year, marking a 13.08% decrease.

According to provisional data from the Economic Relations Division (ERD), this amount includes $3.26 billion in loans and $270.64 million in grants. The report highlights a concerning 67.11% drop in new funding commitments from development partners, with new loan commitments plummeting by 69.47%.

Despite the decrease in overall aid, foreign grants saw an increase of 48.54%, rising from $182.2 million to $270.64 million. The cost of servicing existing debts has risen by 26.40% to $1.98 billion, exacerbated by increased interest rates and currency pressures.

The Asian Development Bank (ADB) emerged as the leading contributor, with $1.05 billion disbursed, followed by the World Bank at $801 million and Russia at $532 million. The World Bank also led in new commitments with agreements worth $914.50 million, indicating a complex landscape for foreign aid as Bangladesh navigates economic challenges while seeking to enhance its development initiatives amid declining external support.